- The survey showed that a staggering 64 percent of respondents buy NFTs to make money while others buy them for community and flex, digital art ownership, and accessing games and tools.
- About 48 percent of respondents said that they are not willing to spend more than $500 on buying NFTs.
Over the last year, the non-fungible tokens (NFT) market has witnessed a massive boom. In fact, the flipping of NFTs became quite popular during the crypto bull run of 2021. Also, many saw NFT flipping as a potential trading strategy.
As per the recent survey conducted by DEXterlab, a majority of 58 percent of respondents said that flipping NFTs haven’t been profitable for them yet. On the other hand, 42 percent of respondents said that they made profits from the NFTs purchased. However, these numbers are close and thus we cannot say that NFT flipping isn’t profitable at all.
Furthermore, the NFT market has witnessed a major slowdown this year in 2022. The crypto market correction of 2022 has also seen NFT volumes drying down significantly.
Non-fungible tokens (NFTs) have grown beyond just being static images. Blockchain-based NFTs can be used to represent the ownership of any digital art format. NFTs also help to maintain blockchain-based records of ownership which bring transparency and authenticity.
The survey from DEXterlab had some interesting questions for people. The survey had the question “Why Do You Buy NFTs?” A staggering 64 percent of the respondents said that their primary reason to buy NFTs is to make money. Well, this is obvious considering that NFTs have given outsized returns to investors.
For e.g. earlier in March 2022, Blocksmith Labs launched its first NFT collection. The floor price of NFT back then was 5 SOL. Now the same NFTs are trading for a massive 130 SOL. This is a 26x return in just a span of three months.
Using NFTs as part of community and flex
Apart from making money, nearly 15 percent of respondents say that they use NFTs to become part of a community and flex. In the report, DEXterlab noted:
A strong community is one of the most significant advantages of NFT projects since active, friendly people and good engagement can set the foundation for the project’s success by building buzz and attracting new people, meaning you’re investing in something that can bring long-term value.
Also, community members with access to NFTs also have several perks. This could be early access to new collectibles or attending exclusive events. Only 12 percent of them voted to say that they buy NFTs to own digital art collectibles while 8.5 percent said that they buy NFTs to access different games and tools.
Another interesting point from the survey is that owning NFTs doesn’t need to be expensive always. A majority of 48% of respondents said that they are willing to spend anywhere between $50-$500 to buy NFTs. However, a good majority of 25 percent of respondents said that they are ok spending more than $2,000 per NFT.